We love entrepreneurs who share tips from the trenches and Neil Patel, founder of Quick Sprout + KISSmetrics, is all about this. He shares some of the most useful, actionable advice on how to grow your business based on everything he has tested and learned from growing his own multi-million dollar companies.
Below Neil shares 10 solutions to help you overcome price objections and make new customers feel good about handing their money over to you.
Make sure to check out his original article on QuickSprout with examples of successful companies who have implemented these strategies including Neil.
If you really want to show the value in what you offer, you have to create case studies. The simple ones won’t cut it, you have to give detailed ones… ideally with the exact things you provided and the results.
The easiest way to demand a high price point is to explain how much money you are going to either make a company, or how much money you will save them.
When I used to sell the Quick Sprout Traffic System, some people felt it was a bit too expensive. They didn’t like the fact that I was charging $197 for an eBook, and video/audio training.
Instead of reducing the price I tested out a few payment plan options:
Although both pricing plans in total were more expensive than the original price of $197 - the 3 payments plan option converted at 34% more than the original offering and the 4 payment plan option converted at 52% better than the original.
When people start to complain about your price points, you should explain how you go the extra mile for your customers and all of the little things you do for free.
If people understand why your prices are what they are, they’ll be more likely to pay them. Tell them your fix costs, explain what their money is being spent on, and even tell them your profit margins.
Now this won’t work for all businesses, but you could lower your price by offering a limited version of your product or service. Plus if people are happy and looking for more, it creates upsell opportunities.
Consider creating a comparison chart that shows how you differ from the competition. This is done on the homepage of Crazy Egg. It provided a single digit increase in conversions, so not a huge boost but better than nothing at all.
In many cases, lower prices will come with a drawback. If you can explain the drawbacks of the lower price you can persuade people to pay your premium prices.
There are a lot of little tricks you can do to make your price points seem like they are lower than they actually are.
Walmart has actually mastered this. Instead of charging you $50 for something, they’ll charge you $49.97. That way you emotionally feel like you are getting a good deal.